- Luxembourg VAT rates were reduced for one year in 2023
- It is unlikely that the reduction will be extended
- A new piece of legislation would be necessary to renew the reduction
- Factors indicating that the measure will not be extended include the temporary nature of the reduction, slowed inflation, and the change in government
- Businesses were advised to adapt their accounting systems and review contracts to accommodate the temporary reduction
- The current VAT rates for various goods and services range from 3% to 16%
- Businesses should prepare to revert to pre-2023 rates by 1 January 2024.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
